Accounting rules over-state government revenue on actual cash basis

by Richard McCandless

Canadian public sector modified accrual accounting rules state that all of the net income (profit or loss) of self-supporting Crown corporations is to be included in the provincial consolidated revenue fund. However, as the actual cash transfer from BC Hydro and ICBC is usually significantly lower than the net income, the national accounting rules overstate the government’s revenue on a cash basis.


Occasional Paper No. 10 21 September 2016